The crypto market experienced dramatic selling on Tuesday, with Bitcoin (BTC) plunging over 7% to $87,608, its lowest point in three months. This sudden decline impacted related stocks, creating substantial drops among industry giants.

Impact on Crypto Stocks

Among the most significant declines:

• MicroStrategy (NASDAQ:MSTR): Down 11%
• Coinbase (NASDAQ:COIN): Down 8%
• Riot Platforms (NASDAQ:RIOT): Down 9%
• Applied Digital Corp.: Down 13%

Other cryptocurrencies also suffered losses, with Ethereum (ETH) falling 8%, XRP declining 9%, and Solana (SOL) down 6%.

Reasons Behind the Sell Off

• Concerns in traditional markets led to a risk-off sentiment.
• The Nasdaq Composite experienced a 1.3% drop, extending a three-day losing streak.

The Road Ahead: More Volatility Expected

Key points to keep an eye on include upcoming Bank of Japan policy updates, trends in the U.S. equity market, and developments on the regulatory front regarding crypto ETFs.